Nuclear energy is making a global comeback given the increasing electricity demand and is set to reach a new record in 2025, according to a study by the International Energy Agency (IEA) released Thursday.
Interest in nuclear energy is greater than it has been since the oil crisis of the 1970s, with more than 40 countries seeking to expand nuclear energy, the IEA report said.
The increase in demand for electricity comes from traditional sectors, such as industry, and new areas such as electric cars, data centers and power artificial intelligence.
According to the IEA, electricity generation from the global fleet of almost 420 reactors will reach a new peak this year.
"It's clear today that the strong comeback for nuclear energy that the IEA predicted several years ago is well underway, with nuclear set to generate a record level of electricity in 2025," said IEA Executive Director Fatih Birol.
"In addition to this, more than 70 gigawatts (GW) of new nuclear capacity is under construction globally, one of the highest levels in the last 30 years, and more than 40 countries around the world have plans to expand nuclear's role in their energy systems."
Birol pointed to small modular reactors, in particular, as offering "exciting growth potential."
Nuclear power accounts for almost 10% of global electricity generation and is the second-largest source of low-emission electricity after hydropower.
Even though some countries are phasing out nuclear energy or decommissioning their plants, global electricity generation from nuclear power plants is increasing.
Japan is resuming production, France has completed maintenance work on its nuclear power plants and new reactors are coming online in countries including China, India, South Korea and Europe.
The agency warned that the expansion of nuclear power relies heavily on Chinese and Russian technology and resources such as uranium, which carries the risk of future dependencies.
China is making significant gains, while traditional nuclear power countries such as the United States and France are struggling with delays and increased costs in modernizing their nuclear power plants.
The IEA said that while nuclear power has traditionally relied on state funding, private investors are also needed to expand the sector rapidly.
The agency projects that, in a "rapid growth scenario" for the sector, the amount invested yearly would need to double to $120 billion by 2030.
